MicroStrategy's stock has dropped by 40% as Bitcoin struggles to hold above $90,000. Bitcoin ETF outflows in February reached $1.3 billion, putting more selling pressure on Bitcoin. If Bitcoin fails to hold the $89,000 support level, prices could fall to MicroStrategy's average cost of $66,300. The stock is currently 60% above its fair value, and the gap is starting to shrink, indicating that investors may have overpaid. MicroStrategy has continued to accumulate Bitcoin, adding $6 billion worth since December, but its stock is losing its premium over its net asset value. The significant outflows from Bitcoin ETFs, driven by arbitrage strategies, are adding to the selling pressure on Bitcoin. If Bitcoin is unable to reclaim its recent levels, it may test MicroStrategy's average cost. Technical analysis suggests that MicroStrategy's shares are also breaching support levels. Overall, the lack of bullish catalysts and selling pressure could lead to further declines in both Bitcoin and MicroStrategy.



Other News from Today